ISE 2040.01
Transcript Abbreviation:
(N/A)
Course Description:
Economic analysis of engineering project alternatives. Cash flow modeling; time value of money; techniques for comparing project alternatives and making solid business recommendations; influence of financial accounting and cost accounting on cash flow models. Course uses MS Excel as primary business tool for modeling.
Course Levels:
Undergraduate (1000-5000 level)
Designation:
Required
Elective
General Education Course:
(N/A)
Cross-Listings:
(N/A)
Credit Hours (Minimum if “Range”selected):
2.00
Max Credit Hours:
(N/A)
Select if Repeatable:
Off
Maximum Repeatable Credits:
(N/A)
Total Completions Allowed:
(N/A)
Allow Multiple Enrollments in Term:
No
Course Length:
14 weeks (autumn or spring)
7 weeks (autumn or spring)
Off Campus:
Never
Campus Location:
Columbus
Lima
Marion
Newark
Instruction Modes:
In Person (75-100% campus; 0-24% online)
Distance Learning (100% online)
Prerequisites and Co-requisites:
Prereq: Soph, Jr, or Sr standing in Engineering or BSET program.
Electronically Enforced:
Yes
Exclusions:
(N/A)
Course Goals / Objectives:
Understand a corporation’s general business goals, and how they report their financial results to their shareholders.
Describe basic cost component behavior associated with engineering and manufacturing using common accounting terminology.
Understand the concept of ‘minimal acceptable rate of return’ (MARR), how it is used, and what factors influence it.
Use appropriate financial acumen in communications.
Model descriptions of engineering projects as discrete cash flows.
Use present worth, future worth, rate of return, simple payback period, discounted payback period, and break-even analysis to evaluate, compare and rank engineering projects.
Understand the advantages, disadvantages, and pitfalls associated with each of the analysis methods above, interpret the results from these methods, and understand the interrelations among the methods
Evaluate project financial outcomes and make recommendations based on proper calculations using MS Excel functions and good spreadsheet design.
Evaluate project risk using scenario analysis.
Understand and apply engineering economic analysis method(s) to a student selected case study.
Check if concurrence sought:
No
Contact Hours:
| Topic | LEC | REC | LAB | LAB Inst |
|---|---|---|---|---|
| Engineering Economic Introduction with Case Study Analysis | 1.5 | 0 | 0 | 0 |
| Corporate Objectives, Role of Engineers in Corporate Strategy, and minimal acceptable rate of return (MARR) | 3.0 | 0 | 0 | 0 |
| Financial Statements, terminology and basic financial ratios | 2.0 | 0 | 0 | 0 |
| Cost accounting terminology, cost behaviors, and applications of cost analysis in engineering | 2.0 | 0 | 0 | 0 |
| Time Value of Money Concepts - Present Value, Future Value of Single and Annuity (Repeating Cash flows) | 3.0 | 0 | 0 | 0 |
| Net Present Value Analysis Method | 3.0 | 0 | 0 | 0 |
| Annual Equivalent Worth Analysis method | 3.0 | 0 | 0 | 0 |
| Rate of Return Analysis Method | 3.0 | 0 | 0 | 0 |
| Risk Analysis | 2.0 | 0 | 0 | 0 |
| Total | 22.5 | 0 | 0 | 0 |
Grading Plan:
Letter Grade
Course Components:
Lecture
Grade Roster Component:
Lecture
Credit by Exam (EM):
No
Grades Breakdown:
| Aspect | Percent |
|---|---|
| Bio & discussion introduction | 2% |
| Pre-class readings, SmartBook via McGraw Hill Connect | 17.5% |
| Homework Quizzes (5 @ 50 points each): 3 tries per Homework | 25% |
| Attendance & Participation (1 free miss) | 5.5% |
| Midterm Exam | 15% |
| Final Exam | 20% |
| Case Study | 15% |
Representative Textbooks and Other Course Materials:
| Title | Author | Year |
|---|---|---|
| Engineering Economy Excelerated | Sandy Furterer and Hannah Meckstroth | Cognella Publishing |
ABET-CAC Criterion 3 Outcomes:
(N/A)
ABET-ETAC Criterion 3 Outcomes:
| Outcome | Contribution | Description |
|---|---|---|
| 1 | Significant contribution (7+ hours) | an ability to apply knowledge, techniques, skills and modern tools of mathematics, science, engineering, and technology to solve broadly-defined engineering problem appropriate to the discipline |
| 2 | Substantial contribution (3-6 hours) | an ability to design systems, components, or processes meeting specified needs for broadly defined engineering problems appropriate to the discipline |
ABET-EAC Criterion 3 Outcomes:
| Outcome | Contribution | Description |
|---|---|---|
| 1 | Substantial contribution (3-6 hours) | an ability to identify, formulate, and solve complex engineering problems by applying principles of engineering, science, and mathematics |
| 2 | Some contribution (1-2 hours) | an ability to apply engineering design to produce solutions that meet specified needs with consideration of public health, safety, and welfare, as well as global, cultural, social, environmental, and economic factors |
| 4 | Significant contribution (7+ hours) | an ability to recognize ethical and professional responsibilities in engineering situations and make informed judgments, which must consider the impact of engineering solutions in global, economic, environmental, and societal contexts |
| 6 | Substantial contribution (3-6 hours) | an ability to develop and conduct appropriate experimentation, analyze and interpret data, and use engineering judgment to draw conclusions |
Embedded Literacies Info:
This course does not have an Advanced Writing Embedded Literacy
This course does not have a Data Analysis – Quantitative Embedded Literacy
This course does not have a Data Analysis – Qualitative Embedded Literacy
This course does not have Technology – Qualitative Embedded Literacy
Attachments:
(N/A)
Additional Notes or Comments:
(N/A)
Basic Course Overview:
ISE_2040.01_basic.pdf
(11.51 KB)